No, this has nothing to do with transvestite members of the Master Race!
A Drag Nazi is a hang glider pilot who is obsessed with eliminating or greatly reducing the parasitic drag produced by his glider, harness, and other flying equipment. Parasitic drag is caused by anything on the glider, other than the wing itself, that disrupts smooth airflow. Wing efficiency can be expressed in terms of lift produced by the wing divided by the total drag produced by the entire aircraft (L/D), thus the less drag the greater the efficiency. The wing produces a certain amount of induced drag and things like the control bar, support cables, exposed bolt heads and nuts, zipper handles, even the pilot himself, produce parasitic drag; added together they are the total drag. Nothing can be done to reduce the induced drag of a given airfoil, but much can be done to reduce parasitic drag.
Some pilots primarily fly sites dominated by ridge lift conditions, such as coastal cliffs. At these types of sites there is a lift band along the cliff-top within which a pilot can easily remain aloft as long as the wind keeps blowing. The overall size of the lift band varies with the wind speed and will have minor variations in size due to gaps in the cliff face or other changes in the shape or height of the terrain. Pilots flying these sites are confined to staying within the lift band and have great fun zooming up and down the ridge line, racing their buddies, or floating slowly in the sweet spots, vying for the coveted 'top of the stack' position. This is in contrast to sites dominated by thermal lift conditions, where pilots find thermals and climb thousands of feet, spreading out or flying together as desired, often turning downwind and flying to scattered points many miles away from where they launched.
For the ridge pilot, flying can become all about being higher than the other pilots nearby, or flying from A to B and arriving at B higher than others flying A to B alongside him. Once he starts to reach the limit of what he can do in terms of flying skills and decision-making, the pilot will turn to making his glider more efficient. He'll tighten and tune his wing until it is awesome while flying straight but difficult or dangerous in turns. He'll make a custom fairing for his flight instrument(s), which are of necessity clamped to his control bar where he can see them, right out in the airflow. He'll switch to a streamlined helmet that offers minimal crash protection. He'll put tape over all his exposed fasteners to smooth the airflow.
He'll cut all of his zipper handles off and replace them with tiny bits
of string (making the glider much more difficult to assemble and
disassemble). He'll wear skin-tight 'speed sleeves' on his upper body, to reduce the drag his arms produce while steering the glider.
All of this to get literally a few feet higher than the other guy.
Often the pilot is blind to huge inconsistencies in his quest. He may have trimmed and taped everything in sight, but he flies with an open-backed multi-suspension-point 'cocoon' harness for comfort and doing aerobatics (loops, etc.) more easily, instead of an enclosed, streamlined 'pod' harness with a single suspension line; all his taping and trimming removes a mere fraction of the excess drag his comfy harness produces. He'll have a (drag producing) camera mounted under his wing or on a (highly drag producing) boom so he can get visual proof of him being a few feet higher than his fellow pilots.
He has become a Drag Nazi.